Theme Of A Fire By Jack London - 1376 Words

To Build a Fire Jack Thurman Prof Cole Bellamy Week 3 In To Build a Fire by Jack London, the setting plays a significant role throughout the entire short story. Jack London uses certain techniques to establish the atmosphere of the story. By introducing his readers to the setting, prepares them for a tone that is depressed and frightening. Isolated by an environment of frigid weather and doom, the author shows us how the main character of the story is completely unaware of his surroundings. The only world the man is truly accustomed to, is his own. Never being exposed to such a harsh climate, draws us to the conclusion that the environment is the determining factor of his survival, as well as his dog s too. Anything that the man and his dog comes into contact with, creates an anticipation for disaster in the story. London places a strong emphasis on the setting in the introduction to the story. Day had broken cold and grey, exceedingly cold and grey... He repeats these phrases to redefine to his readers the impact the setting has on the lives of the characters. The gloominess of the setting instills feelings in the man and the dog, of a constant battle with this world of depression they are in. Being given no sense of imagination, the man is only gifted with his practical knowledge. He therefore is shown to lack the experience and thought to adapt to the conditions encompassing him. Typically, man never wants to deal with the reality, especially when itShow MoreRelatedThe Theme Of A Fire By Jack London794 Words   |  4 Pages The theme â€Å"To Build a Fire† by Jack London, is about pride, which is shown by survival in the wilderness, taking advice, and inevitably death. Pride is a major part of survival, especially in environments such as in Yukon, Alaska. When advice is given to you, it’s meant to help you or to save your life. Sometimes you have to learn the hard way when you don’t listen to advice, such as did the main character in the Alaska extreme cold weather. Formatively, you have to ask yourself; will you liveRead MoreTheme Of A Fire By Jack Londons911 Words   |  4 Pageswe would not survive. In ‘To Build a Fire’ written by Jack Londons is a cautionary tale about a man with the lack of survival skills. The main character is introduced a in cold environment with no knowledge on how to survive in general. The shor t story embark on a journey with the idea of represents about the way we think in a dire situation. The opening scene establishes our main character’s inability or lack of care towards his own survival. ‘To Build a Fire’ begins with our main character, a manRead MoreMajor Theme in to Build a Fire by Jack London1360 Words   |  6 PagesMajor Themes Determinism The movement of naturalism was greatly influenced by the 19th-century ideas of Social Darwinism, which was in turn influenced by Charles Darwins theories on evolution. Social Darwinism applied to the human environment the evolutionary concept that natural environments alter an organisms biological makeup over time through natural selection. Social Darwinists and naturalists cited this as proof that organisms, including humans, do not have free will, but are shaped, orRead More The Existential Theme of London’s To Build A Fire Essay1311 Words   |  6 PagesThe Existential Theme of London’s â€Å"To Build A Fire  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   Jack London’s short story, â€Å"To Build a Fire,† is the tragic tale of a man who decides to travel alone through the hostile environment of the Yukon in sub-freeing temperatures and falls victim to the unrelenting and unforgiving power of nature. During his journey, the man gets his feet wet as he falls through the ice into the water of a hot spring (London 122). Because of the severity of the cold, some â€Å"one hundred and seven degreesRead MoreJack London : An Oyster Pirate1204 Words   |  5 PagesJack London was born in 1876, and died in 1916. He was born in San Francisco, California, and was the son of Flora Wellman Chaney. When he was a child, he would sometimes living with the Prentisses. Mr. and Mrs. Prentisses were African Americans who served as London’s surrogate parents. When Jack turned 15, he sailed the San Francisco Bay as an oyster pirate. During his time on the water, London developed an alcohol problem, which would eventually become alcoholism. In 1894, London was arrested asRead More Jack Londons To Build a Fire Essay example1103 Words   |  5 PagesJack Londons To Build a Fire In his short story entitled To Build a Fire, Jack London portrays a bitter conflict between man and nature. The nature in this story is the harsh environment of the Yukon Trail. London chose to use nature as the antagonist, almost as a force working against the main character in his struggle for survival. London accomplished this personification of nature by giving the environment many human characteristics, by creating numerous thingsRead MoreLife Requires Imagination Essay1289 Words   |  6 Pagestheir deaths, however some end up passing on and are not able to turn their lives around. However, in the short story To Build a Fire by Jack London the man in the story does not survive his dance with death. In the story, the man, whom never gets a name, embarks on a very cold, very long journey to a mining camp. On his journey, he has to stop several times and build a fire in order to keep himself warm and keep himself going throughout his journey to the camp. He has a dog lead him, and then he mustRead MoreJack London Essay1251 Words   |  6 PagesJack London, an American author known for his thrilling adventure stories, showed the world that even an exciting story that takes place in exotic settings can include all the intricacies of great literature. This is seen in many of his stories with the implementation of symbolism, many times a recurring theme in his work. Also, London used many ideas of the day such as Darwinism and Spencerism in his writings in order to better portray his views. However, perhaps one of the most telling signs thatRead MoreConflict In Jack Londons To Build A Fire1143 Words   |  5 Pagesto beat them. In Jack London’s short story called â€Å"To Build a Fire,† the main character conflicts with mother nature, who keeps tearing him down at every possible point. The main character, who is only referred to as the Man, is battling his way alone through the harsh temperatures of the Yukon. On this journey he runs into many obstacles and challenges. The Man does not listen to the advice he is given, leading to his inevitable death at the end. The most notable theme London builds up and controlsRead MoreEssay on Comparing the Two Versions of To Build a Fire1096 Words   |  5 Pages Comparing the Two Versions of To Build a Fire nbsp; I am absolutely confident that beyond the motif itself, there is no similarity of treatment whatever (544). Jack London, writing in December 1908, was responding to an inquiry from the Richard W. Gilder, editor of Century Magazine. Gilder, having just published To Build a Fire in his magazine, was worried when he came across another version published 6 years earlier. Londons explanation was that the first story was for boys and the

Marketing Reserach Free Essays

Question â€Å"Marketing Research† Respond to the following: . -Of the marketing research tools identified in the textbook, evaluate those that would be most appropriate for a small business. Textbook=[Iacobucci, D. We will write a custom essay sample on Marketing Reserach or any similar topic only for you Order Now (2012). MM, 2nd Edition. Mason, Ohio: Cengage Learning] -When it comes to marketing research, speculate to the blunders that beginning marketers commonly make. Provide a rationale with your response. Answer :- Market research is an effective way to learn about potential customers, their opinions, habits, trends and future plans. It is used to determine the geographic area of a business and demographic characteristics of customers such as age, gender, income and educational level. Marketing research helps a firm identify and solve problems, identify and evaluate market opportunity and develop the effort needed to exploit it. Steps of the Marketing Research Process 1. Identify and Define the Problem/Opportunity – This is the first step in finding a solution; a poor diagnosis will lead to an ineffective solution. 2. Conduct a Preliminary Exploration – Confirming a rejection, the problem as stated by the decision maker is a crucial phase of the research project. In order to do this the researcher must talk to knowledgeable persons both inside and outside the firm. This often gives the researcher a new perspective on the problem. 3. Determine Research Objectives – The earlier steps have given the researcher a better understanding of the problem, and he or she can now begin to formulate hypothesis to fit it. Hypothesis are tentative explanations of a problem, formulated on the basis of weight and knowledge about the problem. The hypothesis may prove to be either right or wrong. 4. Determine Data Needs – Researcher use primary and secondary data. Primary data are originated and collected for a specific problem. They must be generated by original research through observation and/or inquiry. The advantage of such data is that they relate specifically to the problem at hand. In gathering them, new problem may be uncovered and the focus of the research project sharpened. The main disadvantages are the cost and time required to collect them. Secondary data already exist, they are historical data gathered by people either inside or outside the firm to meet their needs. If those needs are similar to the researcher’s needs secondary data can be useful. Although they are cheaper and faster to collect than primary data, their relevance, accuracy, credibility and timeliness must be established before they can be used. 5. Determine Data Sources – The major internal source of primary data is company personals, Retailers, wholesales, customers and competitors are important external sources of primary data. Knowing what primary data are needed gives an indication of who might have them. The major internal source of secondary data is company records. Libraries, trade associations and government publications are important external sources of secondary data. 6. Create the Research Design – The research design specifies the overall framework and the specific procedures for collecting and analyzing the data. This is the most important step in the research process. Research Design can be classified by function and by methodology. Functional Categories – (a). Exploratory Research. (b). Descriptive Research (c). Casual Research (d). Predictive Research. Methodological Research – (a). Historical (b) Survey (c) Experimental (d) Motivational 7. Collect the Data – Once the researcher has determined data needs, data sources, and the framework and procedures to collect and analyze them, the problem becomes one of searching for and securing data. In collecting data, the researcher implements the research design. For secondary data, a good understanding of internal and external sources is necessary. Primary data, however , must be collected through observation and inquiry. 8. Analyses Data and Convert to Information – The data that have been collected according to the research design must be analyzed and interpreted. This leads the researcher to either accept or reject the research hypothesis After coding and editing, data are analyzed. This involves descriptive responses, calculating averages etc. in order to convert raw data into an understandable form for the purpose of interpreting the data. Tabulation, for example, involves arranging the data in a table, graph, or other summery format to facilitate their interpretation. More sophisticated data analysis techniques may also be used as the research moves beyond the description of the data to sophisticated statistical analysis of them. Cross tabulation is often used to show how variable relates to another variable. 9. Communicate the Information – Communicating research findings to decision makers is a crucial step in a research project because the project will be a failure if the results are not communicated effectively. Among the criteria for judging the quality of a research report are completeness, organization, understandability, interest level, accuracy, clarity, conciseness include : specific sections of the report typically (a) Title page (b) Table of contents (c)Executive summery (d) Introduction (e) Body (f) Conclusions and recommendations and (g) Appendices. How to cite Marketing Reserach, Essay examples

WooCommerce Abandoned Cart Rate High 10 Tips to Lower Yours

Every time someone abandons a cart filled with products on your store, youre missing out on a potential sale. Thats why its essential to optimize your website as much as possible, in order to minimize WooCommerce abandoned cart rates. In this article, well go over ten ways do that, so lets get to it! WooCommerce abandoned cart rates in your store. After all, just lowering that percentage a bit can translate to major earnings.Ten ways to lower your WooCommerce abandoned cart rateTheres no single magic formula to reduce WooCommerce abandoned cart rates. What you need to do is focus on improving your stores overall experience,  and  make it easier for customers to purchase products. Here are 10 ways you can make that happen.1. Offer multiple payment gatewaysCredit cards are king when it comes to online payments. However, youve probably noticed that most major online stores accept multiple payment methods, and thats not a coincidence:According to a survey from Baymard, ~6% of shopper s abandon a cart because  there werent enough payment methods.By using more than one payment gateway, you give your customers options. That minimizes the chance that theyll decide not to go through with a purchase because you dont support the payment method they prefer.Out of the box, WooCommerce supports PayPal and Stripe payments, which is a great start. However, you can easily add more payment gateways to your store, such as Amazon Pay and Square.2. Send abandoned cart reminder emailsIf youre anything like us, sometimes you end up browsing online stores only to save products for later. Some people do this using a Favorite button, and others just save items in their shopping carts. You may even have been planning to make a purchase, but something distracted you before you could complete the process.You can try to minimize these situations in your store by sending abandoned cart reminder emails. We wrote a full guide a while ago about how to do this,  using the Abandoned Cart L ite plugin: Abandoned Cart Lite for WooCommerce Author(s): Tyche SoftwaresCurrent Version: 5.6Last Updated: October 16, 2019woocommerce-abandoned-cart.zip 84%Ratings 415,703Downloads WP 1.3+Requires In a nutshell, this plugin enables you to create customized abandoned cart emails and send them out automatically. That way, you might be able to get some people to come back for their WooCommerce abandoned cart!3. Simplify your stores checkout processThe more complex your stores checkout process is, the less likely people are to go through with it. To put it another way, theres no need to force your customers to fill out five pages of fields and forms just to make a purchase. Thats why Baymards survey also found that 26% of shoppers abandoned their carts because of a too long /complicated checkout process.And that statistic is why a lot of online stores add one-click purchase options, such as Amazon. With WooCommerce, you can narrow down your checkout process to a single page, u sing the aptly-named One Page Checkout plugin:With this tool, you can customize every aspect of your checkout process, and minimize it. If you want to read up on how to use it, check out the documentation.4. Display clear-cut pricing on your product pagesThere are few things as annoying as wanting to make an online purchase, only to discover a bunch of hidden fees during the checkout process. Plus, you have to keep in mind that not all people will be able to afford those extra fees. If they only find out about the  real  prices during the checkout process, youll see a lot more WooCommerce abandoned carts.This is actually the number one reason for cart abandonment, with a whopping 76% of shoppers abandoning their order because the extra costs were too high or they were unable to calculate the total order cost up front.The good news is that WooCommerce enables you to display a shipping calculator on your shopping cart, which prevents those ugly surprises:You can also configure shi pping zones, which are areas where specific delivery methods apply. Our advice is – be as specific as possible when it comes to shipping costs, so that customers wont be in for any surprises.5. Offer a comprehensive return policyKnowing that the place youre buying from offers a solid return policy can ease a lot of fears about making a purchase. The more money youre spending, the more critical return policies become.Ideally, your WooCommerce store should have a page dedicated to its return policy. Within that page, you can explain:Which items are eligible for returnHow long customers have to initiate product returnsWhether you get your money back, and howIts important to note that according to some studies, up to 30% of online purchases end in returns. Having a clear-cut return policy can help assuage peoples fears. You can create one from scratch, or you can use an online tool such as TermsFeed to get started quickly.6. Optimize your stores loading timesWe talk a lot about w ebsite performance, because its vital for user experience. Long loading times not only affect your bounce rate, but they can also dissuade people from buying at your store.Consider this scenario, for example. Someone is adding products to their cart, and they start the checkout process. However, the checkout page takes too long to load, or it returns errors. If that happens too often, youre going to see a lot of WooCommerce abandoned carts.The good news is that theres plenty you can do to improve WordPress and WooCommerce performance. That includes optimizing product images  and  using a Content Delivery Network (CDN).7. Set up exit-intent pop-upsAn exit-intent pop-up is a window that appears when a page detects that you want to leave. This is done by tracking your mouse movements, which can reveal your intent to close a page.You can use exit-intent pop-ups to your advantage in WooCommerce, by making offers customers cant refuse. For example, you might provide a coupon that enco urages them to stick around:The goal is to get visitors to re-think finalizing their purchases by sweetening the deal. Exit-intent pop-ups can increase conversion rates by a nice margin, so theyre worth trying out.8. Enable customers to check out as guestsIf you want people to buy something online, you need to make the process as painless as possible for them. Thats why we recommend using a simplified checkout process, which can include letting customers make purchases as guests.A lot of online stores require you to sign up before you can buy anything. They do this so they can save your information, but it can also dissuade customers from buying in the first place. In fact, 34% of shoppers abandon their cart because the site tried to force them to create an account, according to that Baymard survey.WooCommerce includes guest checkout functionality out of the box. You can enable this feature from the  WooCommerce Settings Accounts and Privacy  page:Keep in mind that by permitti ng guest checkout, you might increase sales, but you may miss out on email sign-ups. However, this can be worth it if your WooCommerce abandoned cart rates are high.9. Add notifications throughout the checkout processAs simple as your checkout process might be, it never hurts to add some extra instructions or notifications. That way, the customer always knows whats going on.For example, if your store offers free shipping for orders over a certain amount, you want to make sure buyers know that. To do that, you can include this information  within  their carts:This entices users into finalizing their purchases when they review their shopping carts. You can implement this and other types of notifications using the Cart Notices for WooCommerce plugin: Cart Notices for WooCommerce Author(s): WooCommerce Cart Author(s): XootiXCurrent Version: 1.0.2Last Updated: September 6, 2019side-cart-woocommerce.1.0.2.zip 96%Ratings 68,662Downloads 3.0.1Requires This plug-and-play tool makes it so that when users click on their shopping cart icons, a tab will slide open from the side, showing every item within. Plus, it enables you to add and style checkout Calls-to-Action (CTAs), which can help seal the deal.Lower your WooCommerce abandoned cart rate todayAbandoned shopping carts are a big problem for most online stores. Getting your WooCommerce abandoned cart rates down by even a fraction can increase your income a lot, depending on how many sales you make. You can do this by improving the customer experience, and making it simpler for visitors to make purchases. Free guide5 Essential Tips to Speed Up Your WordPress SiteReduce your loading time by even 50-80% just by following simple tips.

Estee Lauder Case 1 Analysis Essays

Estee Lauder Case 1 Analysis Essays Estee Lauder Case 1 Analysis Paper Estee Lauder Case 1 Analysis Paper Lauder| | Table of Contents Case Abstract3 Vision Statement Mission Statement4 Vision Statement:4 Mission Statement:4 External Audit5 Opportunities Threats5 Competitive Profile Matrix (CPM)6 External Factor Evaluation (EFE) Matrix7 Internal Audit8 Strengths Weakness8 Financial Ratio Analysis9 Internal Factor Evaluation (IFE) Matrix10 SWOT Matrix11 SPACE Matrix12 Internal External Matrix13 Recommendations14 Case Abstract The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products, which consist of lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes, and powders, as well as related items, such as compacts, brushes, and other makeup tools. The company provides its fragrances products in various forms, including sprays and colognes, lotions, powders, creams, and soaps. Its hair care products comprise hair color and styling products, shampoos, conditioners, and finishing sprays. The Estee Lauder Companies sells its products under the Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M A C, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and bumble, Darphin, American Beauty, Flirt! , Good Skin, Grassroots, and Ojon brand names. It also operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Sean John, Missoni, Daisy Fuentes, Tom Ford, and Mustang brand names. The company sells its products through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spas, as well as through company-owned stores, spas, and Web sites; authorized retailer Web sites; stores on cruise ships; in-flight and duty-free shops; and self-select outlets. The Estee Lauder Companies Inc. was founded in 1946 and is based in New York, New York. Vision Statement Mission Statement Vision Statement: Bringing the Best to Everybody We Touch Mission Statement: We are a family company committed to working together with uncompromising ethics and integrity. We strive to always: 1. Provide customers with innovative cosmetic products of the highest quality. 2. Deliver outstanding service by treating each individual as we ourselves would like to be treated. 3. Create an environment that fosters personal growth and well being. 4. Build partnership with our suppliers, retailers and colleagues based on fairness and trust. 5. Enhance our reputation of image, style and prestige. 6. Pursue profit, but never at the expense of quality, service or reputation. 7. Eliminate waste and reduce inefficiencies in order to provide maximum value to our customers. 8. Be responsible citizen in every community we serve. External Audit Opportunities Threats Opportunities 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel 6. The world’s aging population represents an increased investment in the cosmetic industry. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in products damaging the environment. 5. Animal testing for new products | Competitive Profile Matrix (CPM) Companies indentify strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. We used the same idea with Estee Lauder, L’Oreal, and Revlon. L’Oreal and Revlon is a real big competitor for Estee Lauder. Estee Lauder and L’Oreal perform above average on the CPM analysis. Revlon performed average compared how Estee Lauder and L’Oreal rated. | | Estee Lauder| L’Oreal| Revlon| Critical Success Factor| Weight| Rating| Score| Rating| Score| Rating| Score| Advertising| . 13| 3| . 39| 4| . 52| 4| . 52| Product Quality| . 12| 4| . 48| 4| . 48| 3| . 36| Price Competitiveness| . 10| 2| . 20| 4| . 28| 4| . 28| Management| . 12| 3| . 36| 2| . 4| 2| . 24| Financial Position| . 10| 3| . 30| 3| . 30| 3| . 30| Customer Loyalty| . 12| 3| . 36| 3| . 36| 3| . 36| Global Expansion| . 09| 4| . 36| 2| . 18| 2| . 18| Sales Distribution| . 08| 3| . 24| 3| . 24| 2| . 16| Manufacturing| . 07| 3| . 21| 3| . 21| 3| . 21| Research and Development| . 07| 2| . 14| 2| . 14| 2| . 14| Total:| 1. 00| | 3. 04| | 2. 95| | 2. 75| External Factor Evaluation (EFE) Ma trix An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance from 0. 0 to 1. 0, letting 0. 0 (least important) and 1. 0 (most important). Next we rated between 1 and 4 each key external factor to indicate how effective Estee Lauder structure. Finally multiplying the weight and the rating we got a score the show how effective each factor was. Key External Factors| Weight| Rating| Weighted Score| Opportunities| | | | 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. | 0. 08| 2| 0. 16| 2. Optimization of brand portfolio. | 0. 10| 3| 0. 30| 3. Strengthening of global markets| 0. 10| 3| 0. 30| 4. Expansion of global markets| 0. 10| 3| 0. 30| 5. Diversification of distribution channel| 0. 09| 3| 0. 27| 6. The world’s aging population represents an increased investment in the cosmetic industry| 0. 08| 2| 0. 16| Threats| | | | 1. Domination of the Asian department store channel| 0. 09| 2| 0. 18| 2. Australia has a slower and difficult retail environment in the fragrance category| 0. 9| 2| 0. 18| 3. Unemployment rate increase will disable Americans to buy the high end product. | 0. 13| 4| 0. 52| 4. The use of aerosols and fluorocarbons with damaging the environment. | 0. 09| 2| 0. 18| 5. Animal testing for new products| 0. 05| 1| 0. 05| Total:| 1. 0| | 2. 60| Internal Audit Strengths Weakness Strengths 1. Sells products through ups cale department stores, specialty retailers, and prestige salons. 2. Has 26 brands, sells products over 130 countries a territories. 3. One of the first major cosmetic firms to offer online shopping. 4. Prestige pricing is an effective strategy given the target markets 5. First company to offer free samples and gift with purchase. 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 7. First industry to introduce consistent brand imagery around the world 8. The company uses celebrities as endorsers in the testimonial advertising| Weakness 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase in long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Financial Ratio Analysis The financial ratios are computed from both the income statement and balance sheet. Comparing ratios over time and used to industry averages is more likely to result in meaningful statistics that can be used to identify and evaluate strengths and weakness. Financial factors often alter existing strategies and change implementation plans. For Estee Lauder, we were only able to compute 4 of the financial ratios. The four financial ratios that we were able to compute were Return on Total Assets (ROA), Return on Equity, Net Profit Margin and Revenue per Share. The figures I used to compute the ratio’s came from the 2007 Financial Statements of Estee Lauder. Ratio| Calculation| | | 880. | . 587| | 1500. 7| | | 1383. 6| . 9219| | 1500. 7| | Return on investment = net before-tax profit / net worth| 711. 0| . 10| | 7037. 5| | ROA| 449. 3| . 1089| | 4125. 7| | Return on Equity = Net Income/Shareholders Equity| 449. 3| . 375| | 1199| | Revenues per Share = Revenues/ Shares Outstanding| 7037. 5| 32. 37| | 217. 4 shares| | Net Profit Margin = Net Earnings/Sales| 449. 3| . 064| | 7037. 5| | Internal Factor Evaluation (IFE) Matrix Internal Factor Evaluation is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. As for Estee Lauder their weaknesses were not as detrimental as their strength nor would they have a long term effect on Estee Lauder. Key Internal Factors| Weight| Rating| Weighted Score| Strengths| | | | 1. Sells products through upscale department stores, specialty retailers, and prestige salons. | 0. 09| 3| 0. 27| 2. Has 26 brands, sells products over 130 countries and territories| 0. 12| 4| 0. 48| 3. One of the first major cosmetics firms to offer online shopping. | 0. 11| 4| 0. 44| 4. Prestige pricing is an effective strategy given the target market. | 0. 11| 4| 0. 44| 5. First company to offer free samples and gift with purchase. | 0. 12| 4| 0. 48| 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income| 0. 10| 3| 0. 30| 7. First industry to introduce consistent brand imagery around the world| 0. 11| 4| 0. 44| 8. The company uses celebrities as endorsers in testimonial advertising. | 0. 12| 4| 0. 48| Weakness| | | | 1. Does not sell at lower class retail outlets . | 0. 04| 1| 0. 04| 2. They do not put FDA warning labels on the | 0. 4| 1| 0. 04| 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million| 0. 04| 1| 0. 04| Total:| 1. 0| | 3. 45| SWOT Matrix The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these elements work together. When an organization matched internal strengths to external opportunities, it creates c ore competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. | Strengths 1. Sells products through upscale department stores, specialty retailers, and prestige salons. 2. One of the first major cosmetic firms to offer online shopping. 3. Prestige pricing is an effective strategy given the target markets 4. First company to offer free samples and gift with purchase. 5. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 6. First industry to introduce consistent brand imagery around the world 7. The company uses celebrities as endorsers in the testimonial advertising| Weaknesses 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Opportunities 1. Expected growth in the personal products industry will be fueled by the rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel| SO Strategies 1. (S5, S4, O2) Create more products. 2. (S1,O1,S3) Adding more online marketing to developing markets. | WO Strategies 1. (W3,O2) Add FDA warning labels to new products being developed. . (W4,O1) Decrease long term debt give opportunity to enter more global markets. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in pr oducts damaging the environment. 5. Animal testing for new products | ST Strategies 1. (T1, S3,S4) Use strategy of free samples and online retail to market into the Asian market. 2. (T2, S4) Give more free samples to Australian market to increase sales. . (S6, T5) Have advertising with celebrities expressing that products are not animal tested. | WT Strategies 1. (W2, T3) Sell to lower class retail chain stores such as Wal-Mart. 2. (W3, W4,W5) Add to label that products used are eco-friendly | SPACE Matrix The Strategic Position and Action Evaluation (SPACE) Matrix, is Stage 2 matching tools. Its four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. After constructing the SPACE Matrix for Estee Lauder, Estee Lauder will fall under an aggressive quadrant. Internal Strategic Position| External Strategic Position| Financial Strength (FS)Return on investment 5Leverage 5Liquidity 4Working Capital 5Cash Flow 6 Total: (25/5) 5| Environmental Stability (ES)Technological changes -1Rate of inflation -5Price range of competing products -4Competitive pressure -4 Total: (-14/4) -3. | Competitive Advantage (CA)Market Share -1Product quality -1Customer Loyalty -1Competition’s capacity utilization -5Control over suppliers and distributors -5Total: (-13/5) -2. 6| Industry Strength (IS)Growth Potential 6Profit potential 5Financial stability 4Total: (15/3) 5| X-axis: -2. 6+ (5) = 2. 4 FS Y-axis: -3. 5+ (5) = 1. 5 CA IS (2. 4, 1. 5) ES Internal External Matrix The Internal External Matrix positions Estee Lauders various divisions in this display shown. From the given information it is recommended that Estee Lauder Grow and maintain. This is based on the EFE IFE Score Averages of 2. 7 2. 5 respectively. They should involve the company in: Backward, Forward and Horizontal Integration, Market penetration, Market development, and Product development. The IFE Total Weighted Scores The EFE Total Weighted Scores 4 | 3 Strong| 2 Average| 1 Weak| 3 High| I| II| III| 2 Medium| IV| V| VI| 1 Low| VII| VIII| IX| Total Weighted EFE = 2. 7 Total Weighted IFE = 2. 5 Segments| $ Revenue| % Revenue| EFE Scores| IFE Scores| 1. Skin Care| $2,601,000| 37. 0%| 3| 3| 2. Makeup| 2,712,700| 38. 5%| 2. 5| 3| 3. Fragrance| 1,308,600| 18. 6%| 3| 2. 5| 4. Hair Care| 377,100| 5. 4%| 2. 0| 2. 0| 5. Other| 38,100| 0. 5%| 3| 2| Total| $7,037,500. 00| 100. 0%| 2. 7| 2. 5| Recommendations We recommend the follow for The Este lauder companies: 1. To respond to the economic crisis if Estee lauder finds new service solutions and ways of utilizing social media to address the consumers new mindset. 2. Come up with brands for lower and middle class consumers. 3. Estee lauder can give out complimentary make-up application classes and free facials to market products. 4. Create less expensive sizes of best selling products and use of discreet pricing at make-up counters. 5. Develop a recycling program for products by giving out discounts when consumers bring outdated and empty make-up containers. 6. Create limited edition products that appeal to the fashion conscious consumer. 7. Shift in preference of products to demographic and cultural regions on how consumers shop. 8. Foreign currency fluctuations affecting the Companys results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors will sell products in the same markets and the Companys operating and manufacturing costs outside of the United States. 9. Social, political and economic risks to the Companys foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States. 10. Increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses, some of which have greater resources than the Company does. 11. The Companys ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Companys business. 12. Changes in product mix to products which are less profitable. Changes in global or local conditions, including those due to the volatility in the global equity markets, natural disasters, real or perceived epidemics, or energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the products while traveling, the financial strength of the customers, suppliers or other contract counterparties, the Companys operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on its funding obligations, the cost and availability of raw materials and the assumptions underlying the Companys critical accounting estimates.

Estee Lauder Case 1 Analysis Essays

Estee Lauder Case 1 Analysis Essays Estee Lauder Case 1 Analysis Paper Estee Lauder Case 1 Analysis Paper Lauder| | Table of Contents Case Abstract3 Vision Statement Mission Statement4 Vision Statement:4 Mission Statement:4 External Audit5 Opportunities Threats5 Competitive Profile Matrix (CPM)6 External Factor Evaluation (EFE) Matrix7 Internal Audit8 Strengths Weakness8 Financial Ratio Analysis9 Internal Factor Evaluation (IFE) Matrix10 SWOT Matrix11 SPACE Matrix12 Internal External Matrix13 Recommendations14 Case Abstract The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products, which consist of lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes, and powders, as well as related items, such as compacts, brushes, and other makeup tools. The company provides its fragrances products in various forms, including sprays and colognes, lotions, powders, creams, and soaps. Its hair care products comprise hair color and styling products, shampoos, conditioners, and finishing sprays. The Estee Lauder Companies sells its products under the Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M A C, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and bumble, Darphin, American Beauty, Flirt! , Good Skin, Grassroots, and Ojon brand names. It also operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Sean John, Missoni, Daisy Fuentes, Tom Ford, and Mustang brand names. The company sells its products through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spas, as well as through company-owned stores, spas, and Web sites; authorized retailer Web sites; stores on cruise ships; in-flight and duty-free shops; and self-select outlets. The Estee Lauder Companies Inc. was founded in 1946 and is based in New York, New York. Vision Statement Mission Statement Vision Statement: Bringing the Best to Everybody We Touch Mission Statement: We are a family company committed to working together with uncompromising ethics and integrity. We strive to always: 1. Provide customers with innovative cosmetic products of the highest quality. 2. Deliver outstanding service by treating each individual as we ourselves would like to be treated. 3. Create an environment that fosters personal growth and well being. 4. Build partnership with our suppliers, retailers and colleagues based on fairness and trust. 5. Enhance our reputation of image, style and prestige. 6. Pursue profit, but never at the expense of quality, service or reputation. 7. Eliminate waste and reduce inefficiencies in order to provide maximum value to our customers. 8. Be responsible citizen in every community we serve. External Audit Opportunities Threats Opportunities 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel 6. The world’s aging population represents an increased investment in the cosmetic industry. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in products damaging the environment. 5. Animal testing for new products | Competitive Profile Matrix (CPM) Companies indentify strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. We used the same idea with Estee Lauder, L’Oreal, and Revlon. L’Oreal and Revlon is a real big competitor for Estee Lauder. Estee Lauder and L’Oreal perform above average on the CPM analysis. Revlon performed average compared how Estee Lauder and L’Oreal rated. | | Estee Lauder| L’Oreal| Revlon| Critical Success Factor| Weight| Rating| Score| Rating| Score| Rating| Score| Advertising| . 13| 3| . 39| 4| . 52| 4| . 52| Product Quality| . 12| 4| . 48| 4| . 48| 3| . 36| Price Competitiveness| . 10| 2| . 20| 4| . 28| 4| . 28| Management| . 12| 3| . 36| 2| . 4| 2| . 24| Financial Position| . 10| 3| . 30| 3| . 30| 3| . 30| Customer Loyalty| . 12| 3| . 36| 3| . 36| 3| . 36| Global Expansion| . 09| 4| . 36| 2| . 18| 2| . 18| Sales Distribution| . 08| 3| . 24| 3| . 24| 2| . 16| Manufacturing| . 07| 3| . 21| 3| . 21| 3| . 21| Research and Development| . 07| 2| . 14| 2| . 14| 2| . 14| Total:| 1. 00| | 3. 04| | 2. 95| | 2. 75| External Factor Evaluation (EFE) Ma trix An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance from 0. 0 to 1. 0, letting 0. 0 (least important) and 1. 0 (most important). Next we rated between 1 and 4 each key external factor to indicate how effective Estee Lauder structure. Finally multiplying the weight and the rating we got a score the show how effective each factor was. Key External Factors| Weight| Rating| Weighted Score| Opportunities| | | | 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. | 0. 08| 2| 0. 16| 2. Optimization of brand portfolio. | 0. 10| 3| 0. 30| 3. Strengthening of global markets| 0. 10| 3| 0. 30| 4. Expansion of global markets| 0. 10| 3| 0. 30| 5. Diversification of distribution channel| 0. 09| 3| 0. 27| 6. The world’s aging population represents an increased investment in the cosmetic industry| 0. 08| 2| 0. 16| Threats| | | | 1. Domination of the Asian department store channel| 0. 09| 2| 0. 18| 2. Australia has a slower and difficult retail environment in the fragrance category| 0. 9| 2| 0. 18| 3. Unemployment rate increase will disable Americans to buy the high end product. | 0. 13| 4| 0. 52| 4. The use of aerosols and fluorocarbons with damaging the environment. | 0. 09| 2| 0. 18| 5. Animal testing for new products| 0. 05| 1| 0. 05| Total:| 1. 0| | 2. 60| Internal Audit Strengths Weakness Strengths 1. Sells products through ups cale department stores, specialty retailers, and prestige salons. 2. Has 26 brands, sells products over 130 countries a territories. 3. One of the first major cosmetic firms to offer online shopping. 4. Prestige pricing is an effective strategy given the target markets 5. First company to offer free samples and gift with purchase. 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 7. First industry to introduce consistent brand imagery around the world 8. The company uses celebrities as endorsers in the testimonial advertising| Weakness 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase in long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Financial Ratio Analysis The financial ratios are computed from both the income statement and balance sheet. Comparing ratios over time and used to industry averages is more likely to result in meaningful statistics that can be used to identify and evaluate strengths and weakness. Financial factors often alter existing strategies and change implementation plans. For Estee Lauder, we were only able to compute 4 of the financial ratios. The four financial ratios that we were able to compute were Return on Total Assets (ROA), Return on Equity, Net Profit Margin and Revenue per Share. The figures I used to compute the ratio’s came from the 2007 Financial Statements of Estee Lauder. Ratio| Calculation| | | 880. | . 587| | 1500. 7| | | 1383. 6| . 9219| | 1500. 7| | Return on investment = net before-tax profit / net worth| 711. 0| . 10| | 7037. 5| | ROA| 449. 3| . 1089| | 4125. 7| | Return on Equity = Net Income/Shareholders Equity| 449. 3| . 375| | 1199| | Revenues per Share = Revenues/ Shares Outstanding| 7037. 5| 32. 37| | 217. 4 shares| | Net Profit Margin = Net Earnings/Sales| 449. 3| . 064| | 7037. 5| | Internal Factor Evaluation (IFE) Matrix Internal Factor Evaluation is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. As for Estee Lauder their weaknesses were not as detrimental as their strength nor would they have a long term effect on Estee Lauder. Key Internal Factors| Weight| Rating| Weighted Score| Strengths| | | | 1. Sells products through upscale department stores, specialty retailers, and prestige salons. | 0. 09| 3| 0. 27| 2. Has 26 brands, sells products over 130 countries and territories| 0. 12| 4| 0. 48| 3. One of the first major cosmetics firms to offer online shopping. | 0. 11| 4| 0. 44| 4. Prestige pricing is an effective strategy given the target market. | 0. 11| 4| 0. 44| 5. First company to offer free samples and gift with purchase. | 0. 12| 4| 0. 48| 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income| 0. 10| 3| 0. 30| 7. First industry to introduce consistent brand imagery around the world| 0. 11| 4| 0. 44| 8. The company uses celebrities as endorsers in testimonial advertising. | 0. 12| 4| 0. 48| Weakness| | | | 1. Does not sell at lower class retail outlets . | 0. 04| 1| 0. 04| 2. They do not put FDA warning labels on the | 0. 4| 1| 0. 04| 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million| 0. 04| 1| 0. 04| Total:| 1. 0| | 3. 45| SWOT Matrix The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these elements work together. When an organization matched internal strengths to external opportunities, it creates c ore competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. | Strengths 1. Sells products through upscale department stores, specialty retailers, and prestige salons. 2. One of the first major cosmetic firms to offer online shopping. 3. Prestige pricing is an effective strategy given the target markets 4. First company to offer free samples and gift with purchase. 5. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 6. First industry to introduce consistent brand imagery around the world 7. The company uses celebrities as endorsers in the testimonial advertising| Weaknesses 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Opportunities 1. Expected growth in the personal products industry will be fueled by the rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel| SO Strategies 1. (S5, S4, O2) Create more products. 2. (S1,O1,S3) Adding more online marketing to developing markets. | WO Strategies 1. (W3,O2) Add FDA warning labels to new products being developed. . (W4,O1) Decrease long term debt give opportunity to enter more global markets. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in pr oducts damaging the environment. 5. Animal testing for new products | ST Strategies 1. (T1, S3,S4) Use strategy of free samples and online retail to market into the Asian market. 2. (T2, S4) Give more free samples to Australian market to increase sales. . (S6, T5) Have advertising with celebrities expressing that products are not animal tested. | WT Strategies 1. (W2, T3) Sell to lower class retail chain stores such as Wal-Mart. 2. (W3, W4,W5) Add to label that products used are eco-friendly | SPACE Matrix The Strategic Position and Action Evaluation (SPACE) Matrix, is Stage 2 matching tools. Its four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. After constructing the SPACE Matrix for Estee Lauder, Estee Lauder will fall under an aggressive quadrant. Internal Strategic Position| External Strategic Position| Financial Strength (FS)Return on investment 5Leverage 5Liquidity 4Working Capital 5Cash Flow 6 Total: (25/5) 5| Environmental Stability (ES)Technological changes -1Rate of inflation -5Price range of competing products -4Competitive pressure -4 Total: (-14/4) -3. | Competitive Advantage (CA)Market Share -1Product quality -1Customer Loyalty -1Competition’s capacity utilization -5Control over suppliers and distributors -5Total: (-13/5) -2. 6| Industry Strength (IS)Growth Potential 6Profit potential 5Financial stability 4Total: (15/3) 5| X-axis: -2. 6+ (5) = 2. 4 FS Y-axis: -3. 5+ (5) = 1. 5 CA IS (2. 4, 1. 5) ES Internal External Matrix The Internal External Matrix positions Estee Lauders various divisions in this display shown. From the given information it is recommended that Estee Lauder Grow and maintain. This is based on the EFE IFE Score Averages of 2. 7 2. 5 respectively. They should involve the company in: Backward, Forward and Horizontal Integration, Market penetration, Market development, and Product development. The IFE Total Weighted Scores The EFE Total Weighted Scores 4 | 3 Strong| 2 Average| 1 Weak| 3 High| I| II| III| 2 Medium| IV| V| VI| 1 Low| VII| VIII| IX| Total Weighted EFE = 2. 7 Total Weighted IFE = 2. 5 Segments| $ Revenue| % Revenue| EFE Scores| IFE Scores| 1. Skin Care| $2,601,000| 37. 0%| 3| 3| 2. Makeup| 2,712,700| 38. 5%| 2. 5| 3| 3. Fragrance| 1,308,600| 18. 6%| 3| 2. 5| 4. Hair Care| 377,100| 5. 4%| 2. 0| 2. 0| 5. Other| 38,100| 0. 5%| 3| 2| Total| $7,037,500. 00| 100. 0%| 2. 7| 2. 5| Recommendations We recommend the follow for The Este lauder companies: 1. To respond to the economic crisis if Estee lauder finds new service solutions and ways of utilizing social media to address the consumers new mindset. 2. Come up with brands for lower and middle class consumers. 3. Estee lauder can give out complimentary make-up application classes and free facials to market products. 4. Create less expensive sizes of best selling products and use of discreet pricing at make-up counters. 5. Develop a recycling program for products by giving out discounts when consumers bring outdated and empty make-up containers. 6. Create limited edition products that appeal to the fashion conscious consumer. 7. Shift in preference of products to demographic and cultural regions on how consumers shop. 8. Foreign currency fluctuations affecting the Companys results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors will sell products in the same markets and the Companys operating and manufacturing costs outside of the United States. 9. Social, political and economic risks to the Companys foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States. 10. Increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses, some of which have greater resources than the Company does. 11. The Companys ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Companys business. 12. Changes in product mix to products which are less profitable. Changes in global or local conditions, including those due to the volatility in the global equity markets, natural disasters, real or perceived epidemics, or energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the products while traveling, the financial strength of the customers, suppliers or other contract counterparties, the Companys operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on its funding obligations, the cost and availability of raw materials and the assumptions underlying the Companys critical accounting estimates.

Estee Lauder Case 1 Analysis Essays

Estee Lauder Case 1 Analysis Essays Estee Lauder Case 1 Analysis Paper Estee Lauder Case 1 Analysis Paper Lauder| | Table of Contents Case Abstract3 Vision Statement Mission Statement4 Vision Statement:4 Mission Statement:4 External Audit5 Opportunities Threats5 Competitive Profile Matrix (CPM)6 External Factor Evaluation (EFE) Matrix7 Internal Audit8 Strengths Weakness8 Financial Ratio Analysis9 Internal Factor Evaluation (IFE) Matrix10 SWOT Matrix11 SPACE Matrix12 Internal External Matrix13 Recommendations14 Case Abstract The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products, which consist of lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes, and powders, as well as related items, such as compacts, brushes, and other makeup tools. The company provides its fragrances products in various forms, including sprays and colognes, lotions, powders, creams, and soaps. Its hair care products comprise hair color and styling products, shampoos, conditioners, and finishing sprays. The Estee Lauder Companies sells its products under the Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M A C, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and bumble, Darphin, American Beauty, Flirt! , Good Skin, Grassroots, and Ojon brand names. It also operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Sean John, Missoni, Daisy Fuentes, Tom Ford, and Mustang brand names. The company sells its products through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spas, as well as through company-owned stores, spas, and Web sites; authorized retailer Web sites; stores on cruise ships; in-flight and duty-free shops; and self-select outlets. The Estee Lauder Companies Inc. was founded in 1946 and is based in New York, New York. Vision Statement Mission Statement Vision Statement: Bringing the Best to Everybody We Touch Mission Statement: We are a family company committed to working together with uncompromising ethics and integrity. We strive to always: 1. Provide customers with innovative cosmetic products of the highest quality. 2. Deliver outstanding service by treating each individual as we ourselves would like to be treated. 3. Create an environment that fosters personal growth and well being. 4. Build partnership with our suppliers, retailers and colleagues based on fairness and trust. 5. Enhance our reputation of image, style and prestige. 6. Pursue profit, but never at the expense of quality, service or reputation. 7. Eliminate waste and reduce inefficiencies in order to provide maximum value to our customers. 8. Be responsible citizen in every community we serve. External Audit Opportunities Threats Opportunities 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel 6. The world’s aging population represents an increased investment in the cosmetic industry. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in products damaging the environment. 5. Animal testing for new products | Competitive Profile Matrix (CPM) Companies indentify strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment. We used the same idea with Estee Lauder, L’Oreal, and Revlon. L’Oreal and Revlon is a real big competitor for Estee Lauder. Estee Lauder and L’Oreal perform above average on the CPM analysis. Revlon performed average compared how Estee Lauder and L’Oreal rated. | | Estee Lauder| L’Oreal| Revlon| Critical Success Factor| Weight| Rating| Score| Rating| Score| Rating| Score| Advertising| . 13| 3| . 39| 4| . 52| 4| . 52| Product Quality| . 12| 4| . 48| 4| . 48| 3| . 36| Price Competitiveness| . 10| 2| . 20| 4| . 28| 4| . 28| Management| . 12| 3| . 36| 2| . 4| 2| . 24| Financial Position| . 10| 3| . 30| 3| . 30| 3| . 30| Customer Loyalty| . 12| 3| . 36| 3| . 36| 3| . 36| Global Expansion| . 09| 4| . 36| 2| . 18| 2| . 18| Sales Distribution| . 08| 3| . 24| 3| . 24| 2| . 16| Manufacturing| . 07| 3| . 21| 3| . 21| 3| . 21| Research and Development| . 07| 2| . 14| 2| . 14| 2| . 14| Total:| 1. 00| | 3. 04| | 2. 95| | 2. 75| External Factor Evaluation (EFE) Ma trix An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance from 0. 0 to 1. 0, letting 0. 0 (least important) and 1. 0 (most important). Next we rated between 1 and 4 each key external factor to indicate how effective Estee Lauder structure. Finally multiplying the weight and the rating we got a score the show how effective each factor was. Key External Factors| Weight| Rating| Weighted Score| Opportunities| | | | 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. | 0. 08| 2| 0. 16| 2. Optimization of brand portfolio. | 0. 10| 3| 0. 30| 3. Strengthening of global markets| 0. 10| 3| 0. 30| 4. Expansion of global markets| 0. 10| 3| 0. 30| 5. Diversification of distribution channel| 0. 09| 3| 0. 27| 6. The world’s aging population represents an increased investment in the cosmetic industry| 0. 08| 2| 0. 16| Threats| | | | 1. Domination of the Asian department store channel| 0. 09| 2| 0. 18| 2. Australia has a slower and difficult retail environment in the fragrance category| 0. 9| 2| 0. 18| 3. Unemployment rate increase will disable Americans to buy the high end product. | 0. 13| 4| 0. 52| 4. The use of aerosols and fluorocarbons with damaging the environment. | 0. 09| 2| 0. 18| 5. Animal testing for new products| 0. 05| 1| 0. 05| Total:| 1. 0| | 2. 60| Internal Audit Strengths Weakness Strengths 1. Sells products through ups cale department stores, specialty retailers, and prestige salons. 2. Has 26 brands, sells products over 130 countries a territories. 3. One of the first major cosmetic firms to offer online shopping. 4. Prestige pricing is an effective strategy given the target markets 5. First company to offer free samples and gift with purchase. 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 7. First industry to introduce consistent brand imagery around the world 8. The company uses celebrities as endorsers in the testimonial advertising| Weakness 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase in long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Financial Ratio Analysis The financial ratios are computed from both the income statement and balance sheet. Comparing ratios over time and used to industry averages is more likely to result in meaningful statistics that can be used to identify and evaluate strengths and weakness. Financial factors often alter existing strategies and change implementation plans. For Estee Lauder, we were only able to compute 4 of the financial ratios. The four financial ratios that we were able to compute were Return on Total Assets (ROA), Return on Equity, Net Profit Margin and Revenue per Share. The figures I used to compute the ratio’s came from the 2007 Financial Statements of Estee Lauder. Ratio| Calculation| | | 880. | . 587| | 1500. 7| | | 1383. 6| . 9219| | 1500. 7| | Return on investment = net before-tax profit / net worth| 711. 0| . 10| | 7037. 5| | ROA| 449. 3| . 1089| | 4125. 7| | Return on Equity = Net Income/Shareholders Equity| 449. 3| . 375| | 1199| | Revenues per Share = Revenues/ Shares Outstanding| 7037. 5| 32. 37| | 217. 4 shares| | Net Profit Margin = Net Earnings/Sales| 449. 3| . 064| | 7037. 5| | Internal Factor Evaluation (IFE) Matrix Internal Factor Evaluation is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business. IFE matrix also provides a basis for identifying and evaluating relationships among those areas. As for Estee Lauder their weaknesses were not as detrimental as their strength nor would they have a long term effect on Estee Lauder. Key Internal Factors| Weight| Rating| Weighted Score| Strengths| | | | 1. Sells products through upscale department stores, specialty retailers, and prestige salons. | 0. 09| 3| 0. 27| 2. Has 26 brands, sells products over 130 countries and territories| 0. 12| 4| 0. 48| 3. One of the first major cosmetics firms to offer online shopping. | 0. 11| 4| 0. 44| 4. Prestige pricing is an effective strategy given the target market. | 0. 11| 4| 0. 44| 5. First company to offer free samples and gift with purchase. | 0. 12| 4| 0. 48| 6. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income| 0. 10| 3| 0. 30| 7. First industry to introduce consistent brand imagery around the world| 0. 11| 4| 0. 44| 8. The company uses celebrities as endorsers in testimonial advertising. | 0. 12| 4| 0. 48| Weakness| | | | 1. Does not sell at lower class retail outlets . | 0. 04| 1| 0. 04| 2. They do not put FDA warning labels on the | 0. 4| 1| 0. 04| 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million| 0. 04| 1| 0. 04| Total:| 1. 0| | 3. 45| SWOT Matrix The SWOT Matrix helps visualize the analysis. Also, when executing this analysis it is important to understand how these elements work together. When an organization matched internal strengths to external opportunities, it creates c ore competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities. | Strengths 1. Sells products through upscale department stores, specialty retailers, and prestige salons. 2. One of the first major cosmetic firms to offer online shopping. 3. Prestige pricing is an effective strategy given the target markets 4. First company to offer free samples and gift with purchase. 5. In 2006, the travel retail business comprised approximately 7% of total sales and 20% of operating income 6. First industry to introduce consistent brand imagery around the world 7. The company uses celebrities as endorsers in the testimonial advertising| Weaknesses 1. Does not sell at lower class retail outlets. 2. They do not put FDA warning labels on the products. 3. Increase of long term debt from 2006 to 2007 from 698. 2 million to 1,404. 7 million. | Opportunities 1. Expected growth in the personal products industry will be fueled by the rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel| SO Strategies 1. (S5, S4, O2) Create more products. 2. (S1,O1,S3) Adding more online marketing to developing markets. | WO Strategies 1. (W3,O2) Add FDA warning labels to new products being developed. . (W4,O1) Decrease long term debt give opportunity to enter more global markets. | Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols fluorocarbons in pr oducts damaging the environment. 5. Animal testing for new products | ST Strategies 1. (T1, S3,S4) Use strategy of free samples and online retail to market into the Asian market. 2. (T2, S4) Give more free samples to Australian market to increase sales. . (S6, T5) Have advertising with celebrities expressing that products are not animal tested. | WT Strategies 1. (W2, T3) Sell to lower class retail chain stores such as Wal-Mart. 2. (W3, W4,W5) Add to label that products used are eco-friendly | SPACE Matrix The Strategic Position and Action Evaluation (SPACE) Matrix, is Stage 2 matching tools. Its four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization. After constructing the SPACE Matrix for Estee Lauder, Estee Lauder will fall under an aggressive quadrant. Internal Strategic Position| External Strategic Position| Financial Strength (FS)Return on investment 5Leverage 5Liquidity 4Working Capital 5Cash Flow 6 Total: (25/5) 5| Environmental Stability (ES)Technological changes -1Rate of inflation -5Price range of competing products -4Competitive pressure -4 Total: (-14/4) -3. | Competitive Advantage (CA)Market Share -1Product quality -1Customer Loyalty -1Competition’s capacity utilization -5Control over suppliers and distributors -5Total: (-13/5) -2. 6| Industry Strength (IS)Growth Potential 6Profit potential 5Financial stability 4Total: (15/3) 5| X-axis: -2. 6+ (5) = 2. 4 FS Y-axis: -3. 5+ (5) = 1. 5 CA IS (2. 4, 1. 5) ES Internal External Matrix The Internal External Matrix positions Estee Lauders various divisions in this display shown. From the given information it is recommended that Estee Lauder Grow and maintain. This is based on the EFE IFE Score Averages of 2. 7 2. 5 respectively. They should involve the company in: Backward, Forward and Horizontal Integration, Market penetration, Market development, and Product development. The IFE Total Weighted Scores The EFE Total Weighted Scores 4 | 3 Strong| 2 Average| 1 Weak| 3 High| I| II| III| 2 Medium| IV| V| VI| 1 Low| VII| VIII| IX| Total Weighted EFE = 2. 7 Total Weighted IFE = 2. 5 Segments| $ Revenue| % Revenue| EFE Scores| IFE Scores| 1. Skin Care| $2,601,000| 37. 0%| 3| 3| 2. Makeup| 2,712,700| 38. 5%| 2. 5| 3| 3. Fragrance| 1,308,600| 18. 6%| 3| 2. 5| 4. Hair Care| 377,100| 5. 4%| 2. 0| 2. 0| 5. Other| 38,100| 0. 5%| 3| 2| Total| $7,037,500. 00| 100. 0%| 2. 7| 2. 5| Recommendations We recommend the follow for The Este lauder companies: 1. To respond to the economic crisis if Estee lauder finds new service solutions and ways of utilizing social media to address the consumers new mindset. 2. Come up with brands for lower and middle class consumers. 3. Estee lauder can give out complimentary make-up application classes and free facials to market products. 4. Create less expensive sizes of best selling products and use of discreet pricing at make-up counters. 5. Develop a recycling program for products by giving out discounts when consumers bring outdated and empty make-up containers. 6. Create limited edition products that appeal to the fashion conscious consumer. 7. Shift in preference of products to demographic and cultural regions on how consumers shop. 8. Foreign currency fluctuations affecting the Companys results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors will sell products in the same markets and the Companys operating and manufacturing costs outside of the United States. 9. Social, political and economic risks to the Companys foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States. 10. Increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses, some of which have greater resources than the Company does. 11. The Companys ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Companys business. 12. Changes in product mix to products which are less profitable. Changes in global or local conditions, including those due to the volatility in the global equity markets, natural disasters, real or perceived epidemics, or energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the products while traveling, the financial strength of the customers, suppliers or other contract counterparties, the Companys operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on its funding obligations, the cost and availability of raw materials and the assumptions underlying the Companys critical accounting estimates.

How to Use an Example of a Thesis Paper to Your Benefit and Not Get Caught

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